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A great investment for the next ten years – buy sugar and sell the crude oil
Peter Oberois
Mar. 2, 2007
Sugar is finally making move on the upside. The while gold of the new millennium is by far the best for production of ethanol and its derivatives? The ethanol-based derivatives are replacing gasoline, diesel, Kerosene. Some initial experimentation finds a proper production mechanism can generate replacement for jet fuel.
Ethanol production from sugar is most effective. In spite all the hypes the regular grains especially the corn is no match for sugar in this respect.
Smart money is selling the oil now and buying the sugar futures. The commercial interest in sugar has quadrupled in recent months.
There is a bigger reason for shift from crude oil to sugar based ethanol. The major consumers of energy are wary about the geopolitical effects on crude oil. They are slowly turning towards sugar-based ethanol.
Sugar prices will go up ten times in the next twenty years. The reason is not the price escalation of crude oil. Crude oil prices will actually fall very sharply. It is the promise of steady supply without any cartel that will drive the sugar prices up. At the same time crude oil prices will fall as countries and industries adapt to clean fuel and dependable non-geopolitical supply of energy.
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